Walters Audio Visual Inc. offers an Incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 4 million $1 par common shares. The exercise price is the market price on the grant date-$5 per share. Options cannot be exercised prior to January 1, 2023, and explre December 31, 2027. The fair value of the 4 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $6 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 to 5 Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $6 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (.e. 10,000,000 should be entered as 10).) Show less Credit NO Date General Journal December 31, 202 Compensation expense Paid-in capital - Stock options Debit 2,000,000 1 2.000.000 2.000.000 2 December 31, 202 Compensation expense Paid-in capital - Stock options Olo 2.000.000 3 March 12. 2023 18,000,000 3.000.000 Cash Paid-in capital - stock options Common stock Paid-in capital excess of par OOOO 3.000.000 18,000,000 1,000,000 4 December 31, 202 Paid-in capital - Stock options Paid in capital expiration of stock options o 1,000,000